Bitcoin Drops Below $85,000: What Does Technical Analysis Say?

Bitcoin’s BTC/USD decline over the past week has sparked a heated discussion among traders about whether the bull market has come to an end.

What Happened: Crypto chart analyst Ali Martinez stated that the crypto king has entered oversold conditions first time since August 2024. At that point, Bitcoin rebounded 33%.

Crypto trader Nic notes a solid breakdown of the current Bitcoin setup, pointing out several factors:

1. CME Gap Probability – BTC has a 60% chance of filling the gap at $78,000. A hold above $77,000 would indicate stronger-than-expected demand.
2. Liquidity Air Gap – If BTC enters a low-liquidity zone, it could accelerate down to $70,000. Watching order book depth and bid walls in this range is crucial.
3. Macro Context – With ETF flows still strong and election narratives heating up, this dip could be a shakeout before another push higher.

Also Read: Bitcoin Steadies Around $86,500 As Spot ETF See Another $750 Million Outflows On Wednesday

What's Next: Crypto trader Jelle noted Bitcoin recording the strongest bounce since the sell-off began, currently testing previous lows. He predicts a reclaim and push beyond $89,500 could signal a higher low and potential trend reversal.

Altcoin Sherpa highlighted two key CME gaps: one at $94,000 and one at $78,000. Given the proximity, filling the $78,000 gap first seems logical, especially since it’s already in play. A bounce from there could set the stage for the next leg up.

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